# In the matter of Sri Ananda lakshmi Narasimha Industries India Pvt. Ltd.

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02430. The case involves an application (IA No.136 of 2023) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02430
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-ananda-lakshmi-narasimha-industries-india-pvt-ltd-132fb3b9

## Summary

### Background

The case involves an application (IA No.136 of 2023) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Sri Ananda Lakshmi Narasimha Industries India Pvt Ltd. The CIRP was triggered by a petition (CP (IB)/82/7/AMR/2022) filed by Central Bank of India under Section 7 of the IBC. The applicant, the suspended director of the corporate debtor, sought to recall an ex-parte order dated 20.03.2023. The applicant claimed lack of awareness of legal nuances and insufficient advice regarding the necessity to file a counter. The respondent, Central Bank of India, contested the application, arguing the applicant failed to provide sufficient cause for recalling the order and raised objections regarding limitation.

## Facts

Central Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Sri Ananda Lakshmi Narasimha Industries India Pvt Ltd by filing CP (IB)/82/7/AMR/2022 under Section 7 of the IBC. The suspended director of the corporate debtor, Ms. Chavva Naga Sampathi Tayaru, filed IA No.136 of 2023 seeking recall of an ex-parte order dated 20.03.2023. The director claimed lack of legal awareness and insufficient advice. The corporate debtor was set ex-parte on 13.03.2023. The applicant's counsel took multiple adjournments to file a counter, but the right to file a counter was forfeited on 21.11.2022. The applicant also changed counsel during this period. The Central Bank of India opposed the recall application, citing the applicant's inability to explain

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## Issues and analysis

### Issue 1: Whether sufficient cause exists to recall the ex-parte order dated 20.03.2023 in CP …

**Ratio:** The principle of 'sufficient cause' allows a court to set aside an ex-parte order if the

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**Reasoning:** The court reasoned that the applicant had been granted multiple adjournments to file a

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**Interpretation:** The term 'sufficient cause' is interpreted to mean that the party had not acted

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**Application:** The court applied the principle of 'sufficient cause' to the facts of the case,

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Ms.Chavva Naga…
- **Respondents:** Ananda Lakshmi…; Central Bank of…

## Timeline

- **2022-08-18 — Service of…**: Service of the Corporate…
- **2022-09-12 — Adjournm…**: Mr. Anil Mukarji, Advocate took notice on behalf of the Corporate Debtor and took…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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